Alma Prudence Asia Credit
Overview
Alma Platinum Prudence invests across the liquid Asia credit market including Asia dollar bonds (IG, HY) and pan-Asian convertible bonds.
The fund’s management is delegated to Prudence Investment Management.
Share Class
NAV
Cumulative Performance (%)
Fund Inception 22 August 2023
| Daily | Monthly | Ytd | 1Yr | 3Yr | 5Yr | Incept. | Incept.Date |
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The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Strategy & Manager
Fund Strategy
The Strategy benefits from Prudence’s bottom-up investment approach that strives to generate attractive risk-adjusted return for investors based on its robust proprietary investment research and active portfolio management. The firm’s philosophy is based upon long-term conviction in the growth and potential of the Asia credit markets.
The differentiated investment strategy pursues alpha via three sub-strategies: event driven – mispricing opportunities triggered by idiosyncratic company events, capital market activities, media headlines and other catalysts; opportunistic long/short – fundamental / market driven long/short opportunities via cash securities and OTC derivatives; relative value – arbitrage opportunities within similar asset class and across capital structures.
Investment Manager
Prudence Investment Management is an independent investment manager founded in 2008 focused on investments in Asia credit.
With a bottom-up investment approach, aiming to generate attractive risk-adjusted return based on robust proprietary research and active portfolio management. Overseen by the large and dedicated investment team based in Hong Kong, Shenzhen and Singapore.
Prudence launched its flagship fund in 2009, which is one of the longest standing long /short Asia credit funds.
Key Persons
Chad Liu
Founder & CIO
Chad Liu, has 30 years of experience in credit and has been investing in EM and Asia credit since 2000s. He has extensive buy-side credit experience, and was previously a Director at Deutsche Bank’s Saba Principal Strategies (2006-2008), Chatham Asset Management (2005-2006) and Morgan Stanley Investment Management (1999-2005). He also worked for Shenzhen Development Bank (now Ping An Bank) from 1993-1997. Chad holds an MBA from the Wharton School of the University of Pennsylvania (1999) and a bachelor degree in Economics from Wuhan University (1993).
Linlin Ma
Co-Founder & Co-CIO
Linlin co-founded Prudence and is the Co-CIO. She serves as portfolio manager and is a member of the Investment Committee. Linlin has 18 years of industry experience focusing on Asia credit. Prior to co-founding Prudence, she worked at Deutsche Bank’s Saba Principal Strategies in Hong Kong from 2007 to 2008 and previously at Deutsche Bank in Singapore from 2005 to 2007. Linlin holds a bachelor’s degree in Electrical Engineering from the National University of Singapore.
Statistics & Commentary
Performance
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Investment Manager's Commentary
as of 30/04/2024Market Review and Outlook
Asia credit’s performance was dragged by macro in April. Stubborn inflation, improving US economy, and consistently strong employment figures pushed the Fed to rethink the timing of the rate cut. At the time of writing the commentary, the market prices one 25bps cut in FY2024 instead of a 150bps cut at the end of 2023. Volatility in rates has pushed spreads and yields wider. The risk-off sentiment is exacerbated as the risk of a hot war has escalated between Iran and Israel. China’s latest politburo meeting emphasized the importance of destocking and re-iterated support measures for the real estate market by announcing further relaxation on purchase restrictions.
Asia credit went from extending the duration at the beginning of the year to reducing it in April as the market re-adjusted its expectation for rate cuts. Middle East conflict impacted commodity prices and dampened such expectations further. High beta and long-duration bonds underperformed while regionally South East Asia underperformed China, given South East Asia bonds’ longer duration bias and wider holder base. Under a much weaker macro backdrop, several liquidity management exercises attempted to come to the market with sub-optimal terms and were digested negatively by the market naturally.
Fund
The fund returned negatively in April despite outperforming the general market. The portfolio incurred some mark-to-market losses on our South East Asia exposure while China event-driven positions remained a steady positive contributor. Rates and FX hedges invariably cushioned losses as well this month.
Facts & Documents
Facts
Fund Domicile: Luxembourg
Fund Type: UCITS SICAV
Fund Launch: 22 August 2023
Base Currency: USD
Depositary, Administrator, Transfert Agent: Caceis Investor Services Bank S.A.
Dealing: Daily with a 3-day notice
Cut-off time: 10:00 am CET
Management Company: Alma Capital Investment Management
Investment Manager: Prudence Investment Management (Hong Kong) Limited
Countries where the fund is registered:
Luxembourg, Austria, Germany, France, Italy, Ireland, Switzerland, UK
Sustainability-related disclosures:
The information related to the integration of sustainability risks and to the potential adverse sustainability impacts at the sub-fund level can be found in the prospectus of the Fund.
Identifiers:
I1C-U
ISIN: LU2502329852
Ticker: AMPIV1C LX
Launch: 22 Aug 2023
I2C-E
ISIN: LU2502330439
Ticker: APIVI2E LX
Launch: 22 Aug 2023